Jacobs to support rail expansion for major LA-area port facility

DALLAS - Jacobs (NYSE:J), a $17.6 billion market cap engineering giant currently trading near its 52-week high of $156.31, has been awarded a construction management contract for the Port of Long Beach’s Pier B On-Dock Rail Support Facility program, according to a press release statement issued Thursday. According to InvestingPro data, the company has demonstrated strong financial performance with a 28.4% return over the past year.

The project is part of the port’s $2.2 billion program to enhance cargo movement efficiency and will transform the existing rail yard into a larger facility, expanding from 82 to 171 acres. Upon completion, the port’s on-dock rail capacity will more than triple, allowing it to handle up to 4.7 million twenty-foot shipping containers annually. With a healthy current ratio of 1.39 and moderate debt levels, Jacobs appears well-positioned to handle large-scale projects like this one. For detailed financial analysis and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro.

The Pier B facility is expected to be completed in 2032 and aims to reduce truck traffic and lower emissions in surrounding areas. The project is also projected to create more than 1,000 local jobs.

"The Pier B On-Dock Rail Support Facility embodies the core values of the Port of Long Beach, allowing more cargo to move through our marine terminals with greater efficiency and less impacts on the community," said Port of Long Beach CEO Mario Cordero.

The Port of Long Beach, one of the busiest ports in the United States, will manage ten construction contracts as part of this expansion.

Jacobs Executive Vice President Eva Wood noted that the company’s experience in managing large-scale infrastructure projects will help "deliver enhancements at the port that will expedite cargo movement, reduce shipping costs and contribute to a more resilient supply chain."

Jacobs has previously worked on several projects at the Port of Long Beach, including the design and construction of the port’s Fireboat Station 20. The company’s proven track record is reflected in its strong financial metrics, with $11.8 billion in revenue over the last twelve months and a gross profit margin of 25%. InvestingPro analysis indicates the stock is currently trading above its Fair Value, with 13 additional ProTips available to subscribers looking to make informed investment decisions.

In other recent news, Jacobs Engineering Group Inc. reported strong financial results for the third quarter of fiscal year 2025. The company achieved adjusted earnings per share (EPS) of $1.62, surpassing analysts’ expectations of $1.53. Although there was a slight miss in revenue forecasts, the company demonstrated net revenue growth in its People & Places segment and across all three end-markets in its Intelligent & Advanced Facilities division. Following these results, RBC Capital raised its price target for Jacobs Engineering to $157 from $154, maintaining an Outperform rating. Similarly, KeyBanc increased its price target to $157 from $155, citing a robust fiscal third-quarter performance. KeyBanc also noted that Jacobs Engineering is on track to achieve 100 basis points of margin expansion, aligning with long-term targets set during its analyst day. These developments reflect positive investor sentiment driven by the company’s strategic initiatives and earnings growth.

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